U.S. railroad company CSX announced Wednesday that its second-quarter profit and revenue both climbed, with solid intermodal shipping demand and better pricing helping the company push through a difficult environment for freight.
Following the earnings release, shares of CSX rose 3%.
The railroad industry has found support from steady intermodal demand tied to consumer spending, giving carriers like CSX the ability to manage through an extended slump in coal traffic and softness in parts of the industrial economy.
Intermodal volume refers to freight that travels across multiple forms of transportation — such as trains, trucks, and ships — without the cargo being unloaded and reloaded each time it switches from one mode to another.
Total fuel costs for the quarter climbed significantly, reaching $446 million compared to $269 million during the same quarter a year ago.
The Jacksonville, Florida-based railroad reported second-quarter revenue of $3.94 billion, a 10% increase from the prior year.
Net income for the quarter came in at approximately $1 billion, or 54 cents per share, up from $829 million, or 44 cents per share, in the year-ago period.
